PCAOB Sanctions Weinstein International CPA and Its Sole Partner for Audit and Quality Control Failures

The Public Company Accounting Oversight Board (PCAOB) today announced a settled disciplinary order sanctioning Weinstein International CPA (the “Firm”) and its owner and sole partner, Idan Weinstein (“Weinstein”), for violating PCAOB rules and standards in connection with three issuer audits.

“To protect investors, the PCAOB will not hesitate to take enforcement action against auditors who fail to perform audits in accordance with PCAOB rules and standards,” said PCAOB Chair Erica Y. Williams.

The PCAOB found that during the audits of three different issuers, the Firm and Weinstein committed multiple violations in multiple areas, including failing to (1) obtain sufficient audit evidence, (2) exercise due professional care and professional skepticism, and (3) resolve inconsistencies with respect to related party transactions, intangible assets, and cash balances.

Additionally, the Firm failed to establish, implement, and monitor adequate quality control policies and procedures to provide reasonable assurance that Firm personnel would comply with applicable professional standards. As the Firm’s owner, Weinstein directly and substantially contributed to these quality control violations.

“This case highlights the PCAOB’s continued commitment to hold auditors accountable for failures to approach their audits with due professional care and professional skepticism, particularly when the failures involve multiple audits and inconsistent audit evidence,” said Robert E. Rice, Director of the PCAOB’s Division of Enforcement and Investigations.

Without admitting or denying the findings, the Firm and Weinstein consented to the disciplinary order, which:

1. Censures them;
2. Bars Weinstein from being an associated person of a registered public accounting firm, with a right to petition to re-associate after three years;
3. Revokes the Firm’s registration, with a right to apply to re-register after three years; and
4. Requires the Firm to review and certify its quality control policies prior to submitting any future registration application.

The PCAOB would have imposed a joint and several civil money penalty of $75,000 on the Firm and Weinstein but determined not to do so after consideration of their financial resources.

PCAOB enforcement staff members Michelle W. Jaconski, Samuel C. McCoubrey, and Thomas Barry conducted the investigation. C. Ian Anderson and Stephen D’Angelo supervised this matter.

The PCAOB oversees auditors’ compliance with the Sarbanes-Oxley Act, provisions of the securities laws relating to auditing, professional standards, and PCAOB and SEC rules.

Further information about the PCAOB Division of Enforcement and Investigations is available on the PCAOB website. Firms or individuals wishing to report suspected misconduct by auditors, or to self-report possible misconduct, may visit the PCAOB Tips and Referrals page.

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About the PCAOB

The PCAOB is a nonprofit corporation established by Congress to oversee the audits of public companies in order to protect investors and further the public interest in the preparation of informative, accurate, and independent audit reports. The PCAOB also oversees the audits of brokers and dealers registered with the Securities and Exchange Commission, including compliance reports filed pursuant to federal securities laws.

Contact

PCAOB Office of Communications and Engagement
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